Uber in talks with Careem about foreign investment

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Uber – the ride-hailing giant is in the development of hovering an investment north of $700 million for Careem, which the company aims to utilize to scale the expenses and delivery business under the Careem super-app. 

News revealed that Uber is pursuing upwards of $700 million investment for Careem, as some sources also quote that the investment being pursued was as high as $1 billion. Japan’s SoftBank, one of the biggest technology investors in the world, is on the way of assessing Careem for investment.

Moreover, Careem, now entirely owned by Uber, is also expected to be rolled off from Uber, providing better decision-making control to Careem supervision whereas Uber will remain a shareholder.

Read more: Uber launches ‘Uber Connect’ a new delivery interface in Pakistan

Currently, Careem works under the central command of Uber after its attainment of Careem in a $3.1 billion deal first declared in March 2019. A few months back, Careem CEO and co-founder Mudassir Sheikha declared the launch of the Careem super-app.

As per the sources, Uber’s integrated decision-making has not only influenced Careem’s super-app determinations as well as the core ride-hailing operations. Rides have become costly and there has been experienced a deficiency of riders along with drivers.

Rides becoming costly is a worldwide phenomenon in the Uber ecosystem, but, harmonized with its scheme to turn the company profitable. This year, Uber had its first profitable quarter since its launch in 2009.

Furthermore, in inDriver, the company just hit a record 40,000 rides in a single day in Islamabad/Rawalpindi, which is almost the same as Uber and Careem do in the twin cities. 

As the attempts to increase capital for Careem, Careem’s General Manager for Pakistan Zeeshan Hasib Baig has taken the decision to part ways with the company. In the meantime, Ibrahim Manna, Careem’s managing director for international markets, would be given Zeeshan’s responsibilities temporarily.

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